(SEOUL=Yonhap News) Crowdfunding is constantly spreading in South Korea as an effective option for both startups and investors, less than a year after the platform was introduced here, government data showed Monday.
More than 100 firms, mostly those in the manufacturing, ICT and film-making sectors, have raised a total of 16.3 billion won (US$14 million) of funds from 5,516 investors through the system, according to the Financial Services Commission (FSC).
South Korea, a global tech powerhouse, introduced the equity-style crowdfunding program in January, which allows early-stage startups to raise capital from a large number of individuals investing relatively small amounts of money, typically via the Internet.
The new local nuclear disaster movie "Pandora" has raised 700 million won through the new type of financing, setting a record high in the amount of funds secured through the platform for a single project.
"The funding success rate reached 43 percent as of Dec. 9. It means around half of the business ideas (proposed) have been commercialized," said the FSC, the nation's financial regulatory body.
The number of companies seeking to raise capital through the new corporate fundraising method is on the rise and the success rate is also expected to rise, it added.
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Source: Yonhap News (Dec. 12, 2016)